Buying a new two wheeler brings joy to many, however, coming up with the right financing method can be a challenge. Therefore, many lenders these days approve loans quickly via two wheeler loan apps. You can even carry out the loan application using your phone. However, it is advisable to master the borrowing process and select a loan where repayments can easily be made without too much strain. This article covers the process of obtaining two wheeler finance, by further covering crucial aspects to consider when one searches for a loan to purchase a motorcycle or scooter.
Understanding Two Wheeler Finance Basics
Two wheeler finance is a type of finance option that can be availed of for purchasing bikes, scooters, and other two wheeler vehicles. The following are some common facts that should be known:
- The two wheeler finance or loan amounts are generally between Rs 20,000 to up to Rs 5,00,000
- The schedule of repayment ranges from 12 to 36 months
- Interest rates differ but in most cases are between 9% to 20% per annum
- You may be required to pay a margin of about 10-20% of the price of the vehicle.
When evaluating your loan applications, lenders may take your income, credit profile, and employment status into consideration.
Steps to Get Two Wheeler Finance
The following are several simple steps listed to get a two wheeler loan easily:
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Check Your Eligibility
One needs to make sure that they fulfil the basic requirements of loan eligibility before applying for a two wheeler loan. These eligibility criteria often include:
- One needs to have a steady income
- The age should usually range between 21-60 years old
- The borrower often gets approval with permanent address proof
- A good score is also the eligibility criteria that lenders look when granting a loan
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Gather Required Documents
The common documents needed to get a two wheeler loan include:
- Address proof
- Identity proof (usually includes Aadhaar, PAN card, etc.)
- Income proof (usually includes salary slips, and bank statements)
- Photographs (usually passport size)
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Compare Loan Options
Moving on, one should look at offers from different banks and financial companies. Comparing various aspects related to loans might help in getting the appropriate loan schemes. These aspects usually include:
- Interest rates
- Processing fees
- Repayment terms
- Pre-payment options
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Choose a Lender and Apply
Once you’ve found a good deal, fill out the loan application. You can often do this through a two wheeler loan app or on the lender’s website. Some lenders also accept in-person applications at their branches.
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Vehicle Selection and Loan Approval
After your application is approved, you’ll get a loan offer. This will specify how much you can borrow. You can then choose your two wheeler within this budget. The lender may require details about the vehicle before giving final approval.
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Complete the Purchase
Once everything is approved, the lender will transfer the loan amount to the dealer. You’ll need to pay any down payment and handle the paperwork to complete the purchase.
Tips for Easy Two Wheeler Finance
The following are several tips listed that may help you get easy two wheeler financing:
- Use Two Wheeler Loan Apps: These apps often have faster processing times and let you track your application easily.
- Improve Your Credit Score: A higher score can get you better interest rates. Pay bills on time and keep credit card balances low.
- Save for a Down Payment: A larger down payment can lower your monthly payments and may help you get approved more easily.
- Consider a Co-applicant: Adding a family member with a strong financial profile as a co-applicant can improve your chances of approval.
- Read the Terms: Understand all terms and conditions before signing. Pay attention to things like prepayment penalties and late payment fees.
- Avoid Multiple Applications: Too many loan enquiries in a short time can hurt your credit score. Research first, then apply to your top choice.
Things to Be Careful About
While two wheeler finance through apps is convenient, be cautious:
- Stick to reputable lenders with good reviews
- Don’t share personal information unless you’re sure the app is secure
- Be wary of deals that seem too good to be true
- Make sure you understand all fees.
Planning Your Repayment
Before taking a loan, make a budget to ensure you can afford the monthly payments. Consider:
- Your monthly income
- Other regular expenses
- Emergency savings
It’s smart to choose a loan term that keeps your monthly payment at or below 10-15% of your monthly income.
Conclusion
Getting two wheeler finance is not a complicated process. By understanding the process, preparing the right documents, and using two wheeler loan apps wisely, you can secure a loan that fits your needs. One needs to consider a reliable platform when taking a two wheeler loan. For instance, apps like the Tata Capital app offer user-friendly interfaces that may help you use the app smoothly and understand various aspects related to loans. Remember to compare offers, read the terms carefully, and choose a repayment plan you can comfortably manage. With the right approach, you’ll get your new two wheeler in no time, knowing you’ve made a smart financial decision.
